Survey of Step 4

Process Tasks

  • Define a work breakdown structure (WBS) that is standardized and product-oriented.

  • Ensure the cost estimate WBS matches the schedule and earned value management WBS, if applicable.

  • Describe each WBS element in a WBS dictionary.

  • Update the WBS as the program becomes better defined to reflect changes as they occur.

Best Practices

The cost estimate WBS is product-oriented, traceable to the statement of work, and at an appropriate level of detail to ensure that cost elements are neither omitted nor double-counted.

  • The WBS clearly outlines the end product and major work of the program.

  • In addition to hardware and software elements, the WBS contains program management and other common elements to ensure that all work is covered.

  • The WBS contains at least 3 levels of indenture and the sum of the children elements equal their parent elements.

  • The cost estimate WBS matches the schedule WBS, as well as the earned value management WBS if applicable.

  • The WBS is standardized so that cost data can be collected and used for estimating future programs.

  • The WBS is updated as the program becomes better defined and to reflect changes as they occur.

  • A WBS dictionary exists that defines what is included in each element and how it relates to others in the hierarchy.

Likely Effects If Criteria Are Not Fully Met

  • Without a WBS, the program lacks a framework to develop a schedule and cost plan that can easily track technical accomplishments—in terms of resources spent in relation to the plan as well as completion of activities and tasks.

  • If a cost estimate does not specifically break out common costs, such as government furnished equipment (GFE) costs, or does not include an associated work breakdown structure (WBS) dictionary, one cannot ensure that the estimate includes all relevant costs.

  • Without a standard, product-oriented WBS to facilitate the tracking of resource allocations and expenditures, an organization may have difficulties sharing data among programs, comparing and reconciling costs between contractors, and updating the cost estimate with actual costs.